nChina, Inc. (NASDAQ:NCNO) may be approaching a major achievement in his field, so we’d like to shine some light on the company. nCino, Inc., a software-as-a-service company, provides cloud-based software applications to financial institutions in the United States and internationally. The US$4.1 billion market capitalization company’s losses have narrowed since it announced a full-year loss of US$42 million, compared with its latest trailing-twelve-month loss of US$18 million, as it approaches breakeven. Many investors are wondering to what extent nCino will make a profit, with the big question being “when will the company break even?” We’ve put together a quick overview of industry analyst expectations for the company, its breakeven year, and its implied growth rate.
Check out our latest analysis for nCino
The consensus of sixteen American software analysts is that nCino is on the verge of break-even. They expect the company to make a final loss in 2026, before generating positive profits of $31 million in 2027. The expectation is therefore that the company will break even three years from today. How fast will the company need to grow each year to reach breakeven in 2027? Looking back at analysts’ estimates, they expect the company to grow at an average annual rate of 119%, which is quite optimistic! If the company grows more slowly, it will become profitable at a later date than expected.
We won’t go into company-specific developments for nCino as this is a high-level summary. However, keep in mind that a high growth rate is generally not unusual, especially when a company is in a period of investment.
Before we conclude, there is one aspect worth mentioning. The company has managed its capital wisely, with debt accounting for 15% of equity. This means that the company has financed its operations mainly with equity, and the low debt burden reduces the risk around investing in the loss-making company.
This article is not intended to be a comprehensive analysis of nCino, so if you’re interested in understanding the company on a deeper level, check out nCino’s company page on Simply Wall St. We’ve also compiled a list of key factors. you should do further research:
-
Valuation: What is nCino worth today? Has the future growth potential already been included in the price? The intrinsic value infographic in our free research report helps visualize whether nCino is currently mispriced by the market.
-
Management team: An experienced management team at the helm increases our confidence in the company – take a look at who is on nCino’s board and the CEO’s background.
-
Other well-performing stocks: Are there other stocks that offer better prospects with proven track records? Discover our free list of these great stocks here.
Do you have feedback on this article? Worried about the content? Please contact us directly from us. You can also email the editorial team (at) Simplywallst.com.
This article from Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts using only an unbiased methodology and our articles are not intended as financial advice. It is not a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. We aim to provide you with targeted, long-term analysis based on fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or quality material. Simply Wall St has no positions in the stocks mentioned.
